A Breakdown Of Property Management Fees: How Much Does Keyrenter Charge?

Hiring a professional property manager is a big decision in the long list of tasks, to-dos, and decisions landlords make daily. In most circumstances, teaming up with a PM grants you more freedom, helps you avoid costly mistakes, and builds wealth by removing the headache of owning and managing your real estate. 

While property managers possess the skills and experience to make the lives of homeowners infinitely easier, hiring one requires a high degree of trust. For our clients, this typically stems from our reputation and experience, how well we set expectations and communicate with all stakeholders, our team’s actions, and their ability to execute and deliver on our agreement to manage your property well. Franklin D. Roosevelt once said “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

We most certainly agree with former President Roosevelt and know a thing or two about managing real estate assets with reasonable care, which no surprise, must come at a cost to real estate investors who hire a professional property management company (and those DIY landlords too). Consider it a fee, traded for a service, where in this article, we’ll break down our single-family services and fee structure, so that you’re fully aware of what to expect when working with the team at Keyrenter Tulsa.

Keyrenter’s Property Management Fees For Single Family Homes

Required Property Reserve

First on our list is the $300 Required Property Reserve. Owner’s property reserve funds are held in an escrow account, for any maintenance expenses or utility costs when the property is vacant, or if the owner is responsible for some or all of those utilities. These ‘reserve funds’ also enable our team to take action quickly and efficiently when needed and handle emergencies. By doing so, we provide fast, consistent, and quality customer service to your residents, without wasting time in the process, improving the likelihood of a lease renewal (often with a rental rate increase).

This immediacy preserves the value of your investment, prevents further damage, and reduces your involvement in day-to-day operations. When funds are used from an owner's property reserve account, they typically get replenished from the next month’s rent. In addition, this allows us to provide owners with an accurate cashflow statement at the end of the year, which enables our clients to take advantage of tax deductions without having to piece together information related to expenses since everything runs through our systems.

Our Flat Rate Leasing Fee

Second on the list is our Flat Rate Leasing Fee ($695 as of May 2024), which is paid only after we’ve found a resident for your property and they’ve completed their move-in, which means they’ve paid their security deposit and first month’s rent. The $695 leasing fee is taken out of the rental income the resident paid for the first month. 

Our leasing fee rate is set based on the work and processes our team will set in motion after we have onboarded a property that requires resident placement. Once a vacant property is onboarded with our team, we’ll schedule an initial inspection, which is included in the cost of the leasing fee, and determine what (if any) make-ready work or repairs are required to bring the property to our minimum standards. If we determine from the inspection work is needed, your dedicated property manager will communicate those items, and our team is fully prepared to handle those before a resident moves in.

In addition to the initial inspection, we’ll work with our clients to prepare the property for marketing-quality photos, also included in the cost of the leasing fee, and begin our extensive marketing and advertising efforts to place a resident. Our process includes pre-qualifying prospective residents, coordinating and facilitating showings 7 days per week, from 8 am to 9 pm, and ensuring showings can be conducted at the resident’s convenience.

Once we have found a qualified resident who’s interested in the property, and after they submit their application, our team will initiate a 14-point resident screening process, which allows us to place high-quality residents and guarantee the lease agreement. Throughout this process, owners are updated regularly, from the moment the leasing deal is kicked off internally, to the moment your resident moves in.

Flat Rate Renewal Fee

Next is our Flat Rate Renewal Fee, which is charged at the rate of $495, and covers the cost of renewing a lease with a resident, typically at a rental rate increase that is in line with the Consumer Price Index. As part of our renewal process, we will initially reach out to the owner, roughly 90-60 days before the lease is set to expire, and present the newly suggest lease terms based on an updated rental analysis our team will conduct. Once approved by the owner, we present the offer to the residents and move forward with a lease upon their approval. 

Monthly Management Fee

This fee accounts for our timely communication, 24/7 emergency line, use of technology for which we’re known in the industry as the Same Day Property Manager, and the overall day-to-day management of assets. It covers the cost of operations, provides our owners with access to industry experts, trusted and vetted vendors of all trades, a dedicated property manager, and all the responsibilities you would expect from your property manager. Those include collection and distribution of rental income, accounting of funds and properly holding security deposits, resident management, overseeing an eviction in the event that is needed, the posting of notices, and much more. 

As part of our mission to leverage technology, we enable our clients through smooth and efficient systems, processes, and standard operating procedures we’ve built and continuously refined over the years. Our online Owner/Resident Portals allow landlords to follow their property’s income, expenses, work orders, and updates, and to download their Monthly Owner Statements, which include information pertaining to work orders (if applicable), and accompanying documentation. Through our systems, residents are enabled to make free online payments, and we encourage them to set up automatic bank drafts, allowing timely payments of rent.

Our monthly management fee for single-family homes starts at 10% of the gross rent collected per month. For clients with 3 to 10 properties under our management, the fee is reduced to 8%. If you happen to have 11 or more doors that Keyrenter manages, our monthly fee is typically 7%. 

Home Depot Oversight Fee

An additional aspect of our service is our Home Depot Oversight Fee, which is a 10% charge added to every Home Depot invoice we pay on behalf of an owner. Due to our significant spending with Home Depot, we receive a discount of anywhere between 7-14%. This preferential pricing structure often results in no additional cost to our clients, but for the purpose of transparency, we want to inform you of this practice. Essentially, it's a wash, but it's important you're aware of it.

Year-End 1099 & Cash Flow Statement Preparation

As required by law, Keyrenter must provide owners with a Form-1099, which is accompanied by an annual cash flow statement and is prepared each year by the end of January. To ensure timely and accurate reporting of these, our team leverages a 3rd party vendor to assist in this annual task, which comes at the cost of $49 per year.

When Is It Worth It To Hire A Property Manager?

Deciding whether to hire a property manager or not has everything to do with opportunity cost. If you value time and convenience over total revenue, property management fees are well worth it. Doing so frees up your time to pursue other ventures, focus on your hobbies, spend more time with your family, or work to find your next investment property.

If your vacancy rate is high or you're consistently having difficulty finding qualified residents, that’s also a good sign you need to invest in a property manager. After all, we are experienced with marketing and advertising, pre-qualifying, screening, and placing residents, and the peace of mind that comes with knowing that your home is in good hands is priceless.

If you find yourself spread too thin, confused by legal jargon, or dreaming of expanding your real estate portfolio, bringing in a pro like Keyrenter to help you will save you dozens of headaches and hundreds of hours per year. 

Our goal at Keyrenter is to make your rental business as profitable and stress-free as possible. We’ll free your time, provide you with constant updates, and share with you the knowledge you need to create more wealth through real estate.

Interested in chatting and learning more about us? Visit and reach out to us through Keyrenter's OKC website.

FAQ

Q1. How Much Do Property Managers Charge?

A: Most property managers have several fees they charge to account for different parts of their service. The most common are leasing fees, renewal fees, and monthly management fees (usually 8-12% of total rent income). Depending on who you work with, they may charge a flat rate fee, a percentage of rent, or a combination of both.

Q2. Is Hiring A Property Management Company Worth The Investment?

A: Hiring a property management company is worth the investment since it saves time and plenty of headaches. Especially, if you don’t enjoy the work it takes to be a landlord, you’re looking for a more hands-off approach, or simply choose to focus on your full-time job or spend more time with your family and loved ones. Another reason to lean into working with property managers is if you want to focus on other hobbies and/or business ventures.